The Charity Life Direct insurance program allows donors to provide for larger legacies tomorrow with a smaller commitment today. Although charities are always looking for ways to fund current programs, they also recognize that their needs are growing and they must plan for the future.  
         
 

The donor receives a tax receipt for the entire amount donated each year. When the life insurance proceeds are transferred to the charity, there is no additional tax receipt generated; but the funds are received by the charity tax-free.

With the Charity Life Direct program, the donor’s commitment is only for three or five years. The policy is fully paid for in that time.


 

   

If for some reason the donor cannot continue with the payment of annual premiums (after the first year on a
3-year plan or after the second year on a 5-year plan) a percentage of the coverage will automatically become paid-up. This ensures that the charity will receive a future gift.

  • The gift is immediate, which also gives an immediate tax deduction.
  • The donor’s confidentiality is assured - as life insurance is not a matter of public record.
  • A gift of life insurance is flexible and can be designed to meet many legacy desires.

  

 

   

  • Available for ages 18 to 75
  • Available coverage of $15,000 to $50,000
  • 3-year or 5-year premium payment options
  • Guaranteed level payments
  • Reduced paid-up insurance feature included
  • Coverage begins upon receipt of the first annual premium with a valid application
  • All donations are made annually

 

         
 

The gift of life insurance is the perfect way to leave a substantial legacy and at the same time generate immediate tax credits with each affordable premium payment made.

The Charitable Tax Credit varies by province according to residency. In general, the value of the tax credit for donations in excess of the first $200 is equal to the highest marginal tax rate in the donor’s province, regardless of their income. (Donors should  consult a tax professional to verify their personal situation.)


Samples of Legacy Creation Using the Charity Life Direct Program

$25,000 Gift

5 annual donations, Non-Smoker, Quebec Resident

  

5 annual donations, Non-Smoker, Alberta Resident
Age Annual Donation Donation Tax Credit Rate* Tax Credit* Annual Cost of Donation Total Cost
of $25,000 Legacy		 Age Annual Donation Donation Tax Credit Rate* Tax Credit* Annual Cost of Donation Total Cost
of $25,000 Legacy
M/45 $1,878   48% $901   $977   $4,885   M/45 $1,878   50% $939   $939   $4,695  
F/50 $1,917   48% $920   $997   $4,985   F/50 $1,917   50% $959   $959   $4,795  
M/55 $2,612   48% $1,254   $1,358   $6,790   M/55 $2,612   50% $1,306   $1,306   $6,530  
F/60 $2,690   48% $1,291   $1,399   $6,995   F/60 $2,690   50% $1,345   $1,345   $6,725  

Example of Maximum Charitable Tax Credit Rates across Canada

AB BC MB NB NL NS NT NU ON PE QC SK YT
50% 44% 46% 47% 49% 48% 43% 41% 46% 47% 48% 44% 42%
* These tables are is for illustrative purposes only. Please consult with your tax professional to verify your personal situation.